(MENAFN) Dutch group Philips Electronics is giving up its home entertainment, as consumers going online for music, films and games rather than buying CDs and DVDs, Reuters reported.
The company has agreed to transfer ownership of its audio and video business to Japan's Funai Electric Co for USD202 million.
CEO Frans van Houten wants the group to focus on its more profitable home appliances and healthcare operations.
In future, the consumer division will focus on appliances such as shavers, toasters, juicers and coffee makers, Van Houten said.
Philips said it was on track to achieve its end-2013 targets of sales growth of between 4 and 6 percent, a margin on EBITA of 10 to 12 percent and a return on invested capital of 12 to 14 percent.
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